For the small business owner, daily operation costs can sometimes be overwhelming. Payroll, advertising and office expenses add up quickly. As a company grows and develops, expenses should be evaluated on a regular basis to adjust for evolving needs. During these evaluations, entrepreneurs should consider areas where cost-saving cutbacks can be made to save company resources and eliminate waste.With business growth, the number of tasks requiring completion on a daily basis increases. Consider the size of the workforce and what they accomplish. Is it possible to cross-train employees so that it’s not necessary to add new ones? Is the workflow spread evenly so that each employee is consistently busy, or can things be shifted around to accommodate workflow?
If a company has more work but not enough to justify a new employee, consider cloud sourcing or a virtual assistant for menial tasks. Both are relatively inexpensive and can be utilized on an as-needed basis. Adding an intern is also a great option. There are many interns who need experience to add to their resume.
Accounts receivable and accounts payable should be closely monitored. Are invoices being sent as soon as products or services are delivered? It is vital that companies keep close tabs on delinquent and outstanding accounts. Sometimes these accounts can be cleared up with a phone call. When invoices are received, accounts payable should double-check each invoice to make sure that all charges are correct.
There is no need to pay for items that were never received. It is also important to ensure timely payments of incoming invoices. Paying for late fees or service charges is an expense that can be avoided with smart fiscal planning.Evaluate office expenses when looking for ways to cut costs. Are business cards or flyers being outsourced when they could be printed in-house? It may even be that printing flyers is unnecessary. Newsletters, flyers and advertisements can be emailed. This will save money on printing costs, paper and postage. Cutting paper waste is another way to reduce costs. Utilizing scanners and storing documents on computers and servers can greatly decrease paper use.It doesn’t take much to cut costs. Often it’s simply a matter of verifying where and how money is being spent. Taking advantage of technology is also a great way to reduce expenses. Eliminating waste and increasing efficient use of resources is vital for a company’s bottom line and will encourage growth and success.
About the Author: Casey Haslem is a professional writer for SmartPress and enjoys hiking, the outdoors and spending time with her family.